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Brics creator slams ‘ridiculous’ idea for common currency

Jim O'Neill questions emerging nations bloc’s achievements as it considers expansion

The former Goldman Sachs economist who coined the Brics acronym has dismissed as “ridiculous” the notion that the group of emerging nations might develop its own currency, as Brazil, Russia, India, China and South Africa prepare to discuss whether to expand the bloc.

Ahead of the group’s 15th summit next week, Jim O'Neill told the Financial Times that the Brics had “never achieved anything since they first started meeting”, eight years after he created the phrase in a 2001 research note he wrote as the bank’s chief economist.

Brics nations such as Russia and China have called for the bloc to challenge the US dollar’s status as the world’s reserve currency, but South Africa, which is hosting this year’s summit, has said a Brics currency is not on the agenda for the gathering in Johannesburg.

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